YellowDucky

(FYI I posted this as a new topic, not realizing that this one already existed, and the mods moved it here. Clearly, the points I am making are made by others above) There has been a lot of coverage over the last two days about the Fraser Institute's recent study showing that the "average Canadian family" now pays more in taxes than it does for housing, food and clothing combined. The more right-wing press is expressing outrage at this finding, and the FI is definitely spinning it that way in their press releases, but looking at the actual data in the study might give people a different perspective. It is very easy to read, so there is no reason not to have a peek yourself if the topic interests you. http://www.fraserinstitute.org/uploadedFiles/fraser-ca/Content/research-news/research/publications/canadian-consumer-tax-index-2014.pdf Just a few points I will make: 1. Perhaps not surprisingly, the FI calculates "total family tax" in the most inflated manner possible, including not just income tax, sales taxes, etc.but also for instance taxes *corporations* pay on profits (arguing that ultimately consumers pay for this. So, I guess it follows that anytime a business makes money they pass the savings right on to their customers! That's the invisible hand of the free market, right?) 2. What the report really documents is a success story. Spending on the "necessities of life" (housing, food, clothing) has decreased from about 57% of family cash income in 1961 to just 36% today. That means (a lot) more disposable income for other things. As an agriculturalist I am happy to note that the biggest success is in food costs, which have declined from about 25% of family income to just over 10% over the same period. 3. By contrast, the average family's tax bill has risen from 34 to 42% of their income (again, calculated in the most inflated manner conceivable). So, we spend 21% less of our income on necessities, but 8% more of our income on taxes. Where the report is silent is the issue of what services are being provided with those extra taxes. For example, in 1961 there was no universal single-payer health care in Canada. Also, what fraction of the population was attending publically-funded post secondary education in 1961? Was government regulation of things like environmental protection and food safety at a level we would consider appropriate today? And finally, if the cost of life's necessities has fallen so drastically as a percentage of our income, can't we *afford* to contribute a bit more to the collective effort of building a fair and supportive society? Just my two cents. Read it for yourself and see what you think.

I am not being sarcastic here. Realistically, the thing that most unites Canadians is not being American.